Here are some bullet points that came across my desk today. I hope they help make some senses out of the passage of the recent Acts.
Highlights of the SECURE Act include:
Age restrictions on contributions to a Traditional IRA have been eliminated
- For clients born on or after July 1, 1949, the age for starting required minimum distributions
- (RMDs) has been increased to 72
- Beneficiary distribution choices for deaths that occur starting in 2020 have been changed/updated
- Distributions for qualified birth or adoption expenses are penalty-free up to $5,000
Highlights of the CARES Act include:
- RMDs, including those from Beneficiary IRAs, have been waived for 2020
- Coronavirus-related distributions (CRDs) are penalty-free up to $100,000 through December 30,
- 2020
- CRDs can be repaid over three years, or taxes can be spread over three years
